Carney says $33-billion LNG expansion shows Canada as an 'energy superpower' | Daily Hive

Prime Minister Carney says $33-billion B.C. LNG expansion go-ahead shows Canada acting like an 'energy superpower'

Artistic rendering of the second phase of the LNG Canada facility in Kitimat, B.C. (LNG Canada)

LNG Canada is moving ahead with a major expansion of its Kitimat export terminal, a decision the Government of Canada asserts will unlock $33 billion in private investment and double the facility’s capacity to ship liquefied natural gas (LNG) overseas.

The second phase of the project will increase the terminal’s annual production capacity from 14 million to 28 million tonnes. This builds on the first phase, which began exporting LNG in June 2025.

Prime Minister Mark Carney welcomed the private ownership group’s final investment decision on Tuesday. The federal government describes the expansion as the second-largest single private investment in Canadian history and notes that it will make LNG Canada the world’s second-largest facility of its kind.

Amid the provincial general election campaign period, the announcement drew support from both the BC NDP and Conservative Party of British Columbia, although the parties offered sharply different accounts of the provincial government’s handling of the industry to date.

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The terminal receives natural gas by pipeline and chills it into a liquid for transport aboard ships. Its location on B.C.’s northern coast gives Canadian producers access to overseas customers, particularly in Asia.

The expansion will add two processing units, another LNG storage tank, and an additional loading berth, along with supporting equipment.

LNG Canada expects up to 4,000 construction jobs at the Kitimat site at peak activity. Once the expansion is complete, it expects to add approximately 90 full-time roles and 150 contractor positions to its operating workforce.

“The historic investments in LNG Canada are proof that Canada is building big and bold again. This facility reflects the best of Canadian ambition — built in partnership with Indigenous Peoples, it will export some of the lowest-emitting LNG to new markets in Asia,” said Carney.

“We are building our strength at home, securing new trade partners abroad, and catalysing unprecedented levels of new investment in our major projects. That is what an energy superpower looks like when it decides to act like one.”

Artistic rendering of the second phase of the LNG Canada facility in Kitimat, B.C. (LNG Canada)

Carney’s administration referred the expansion to the federal Major Projects Office in September 2025. The office has since helped coordinate federal processes and work with the provincial government and industry to support the investment decision. Support for the project was also included in the cooperation agreement reached by Carney and Premier David Eby in July 2026.

The terminal expansion also clears the way for a separate, multibillion-dollar increase in Coastal GasLink’s capacity. The 670-km-long pipeline carries natural gas from the Dawson Creek area to Kitimat.

TC Energy notes that new compressor stations and upgrades along the existing route will nearly double the amount of gas the pipeline can carry. Compressors help maintain the pressure needed to move gas through the system.

Pipeline expansion construction work is expected to begin in early 2027, with the upgraded system entering service in the early 2030s. TC Energy estimates up to 2,100 people will be employed at the peak of the construction process across five sites.

LNG Canada is owned by Shell Canada, with a 40 per cent stake. Malaysia’s Petronas owns 25 per cent, China’s PetroChina and Japan’s Mitsubishi Corporation each own 15 per cent, and South Korea’s Kogas owns five per cent.

The investment decision also advances an opportunity for five nearby First Nations to become owners of part of the terminal’s infrastructure. Through MNT Investments LP, the Gitga’at, Gitxaała, Haisla, Kitselas, and Kitsumkalum First Nations have an option to invest up to $1 billion for a majority stake in the new 225,000-cubic-metre LNG storage tank. The arrangement would allow the tank to be leased back to the project, providing a long-term source of revenue for the participating First Nations.

The federal government indicates that LNG Canada has already awarded more than $4.9 billion in contracts and procurement to Indigenous-owned and local businesses. Coastal GasLink’s cumulative contracts with Indigenous and local businesses exceed $1.8 billion.

The Greater Vancouver Board of Trade (GVBOT), citing LNG Canada’s estimates, asserts the second phase could generate more than $50 billion in government revenue over the project’s lifetime.

Existing condition of the first phase of the LNG Canada facility in Kitimat, B.C., as of June 2026. (LNG Canada)

Existing condition of the first phase of the LNG Canada facility in Kitimat, B.C., as of April 2026. (LNG Canada)

Premier Eby portrayed the decision as the result of years of cooperation with the federal government, the private sector, and First Nations.

“This is a big win that will create good jobs and generate the long-term prosperity we need to deliver stronger public services for all British Columbians,” said Eby.

The BC NDP notes that some of the provincial government’s raised revenue from the development will support climate programs that help households and businesses switch to cleaner energy. The party also cited projections that emissions from the facility’s operations would be 35 per cent below those of the world’s best-performing LNG facilities and 60 per cent below the global average.

The Conservatives welcomed the expansion, while arguing the provincial government should have attracted more LNG investment much sooner.

“British Columbia needs many more announcements like today’s final investment decision on LNG Canada Phase 2, not just one expansion after too many years,” said Claire Rattée, the party’s MLA candidate for the riding of Skeena, in a statement issued on behalf of the Conservatives.

“LNG Canada has already shown what major resource development can deliver. It has created thousands of good-paying jobs, brought billions of dollars in investment, opened opportunities for local businesses and built significant economic partnerships with First Nations.”

Rattée blamed regulatory delays and uncertain approval processes for proposed projects that failed to advance under the BC NDP. She pointed to LNG Canada’s employment, business contracts and First Nations partnerships as reasons to pursue further development.

“Under the NDP, most LNG projects once proposed in this province either stalled or were abandoned under the weight of red tape and uncertain permitting. Meanwhile, the United States built export capacity of more than 120 million tonnes per annum, and Qatar is expanding to between 70 and 80 million. The BC NDP have left our province poorer,” asserted Rattée.

The Conservatives’ energy strategy in their election platform calls for more than doubling B.C.’s natural gas production by 2032 and more than tripling it by 2035. Those targets focus on gas production, which supplies LNG terminals as well as other markets.

The party is also proposing a 120-day permitting law for major projects and closer coordination with federal approval and consultation processes, with the aim of securing approvals for provincially-led projects within one year.

Other Conservative commitments include giving the Montney Formation — a massive, energy-rich geological deposit in Western Canada spanning 130,000 sq. km. across northeastern British Columbia and northwestern Alberta — a special designation as a strategic provincial asset, courting foreign investors, and seeking federal recognition for overseas emissions reductions the party says Canadian LNG could deliver by replacing coal and higher-emitting gas supplies.

Existing condition of LNG Canada’s marine export terminal in Kitimat, B.C., as of April 2026. (LNG Canada)

For GVBOT, the expansion demonstrates the economic value of increasing Canada’s access to overseas markets.

“As Canada works to diversify its trade relationships and strengthen economic resilience, LNG Canada Phase 2 represents exactly the kind of investment our country needs,” said Bridgitte Anderson, the president and CEO of GVBOT.

“LNG Canada Phase 2 will create lasting economic opportunities, strengthen our export capacity, and demonstrate what is possible when governments, Indigenous partners, and industry work together to advance nation-building projects.”

The major business advocacy group in Metro Vancouver notes that it has identified more than $230 billion in potential major investments across B.C., including LNG, other energy infrastructure, critical minerals, and transportation infrastructure supporting trade. It is calling for faster permitting, greater Indigenous participation in project ownership and economic benefits, and stronger conditions for attracting investment.

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